How do you determine or identify overbought or oversold currencies?

[BudFoxFx]

A friend of mine told me today that there is more than one way to skin a cat, or boil an egg, or something like that. Anyway, I was looking at RSI and I am almost certain there are new and improved ways of identifying overbought or oversold pairs in Forex, I am used to stocks sort of so any ideas? Any good overbought/oversold indicators that easily gets you into some good trades in Forex?



How about some auto Robots that trade overbought and oversold conditions? That would be even better!

[sniper012]

I'm going to attach a link to a great article. I agree with about 98% of what he is saying. I will say that I use volume, trend lines and pivot points. As far as the indicators you're talking about...just please take the time to read the article.

[sniper012]

the last thing you want to do is trade with a robot. I've said this 1000 times. Think about it. If you created a robot that produced an 85% accuracy rate on a consistent basis, how much would you sell it for? If you say anything less than $20,000 I'm not going to believe you. I know if I had such a robot, bidding would start at $50 grand. Now think about the prices you have seen advertised for these robots. $100? $200? $500? How well can they really work if someone is selling them for that amount? If you ever read The Robb Report, they always advertise this piece of exercise equiptment. it's one piece that has a few gadgets sticking out of it and a seat. It says that you can get an intense, full workout in 4 minutes per day. I don't know if it's true or not, but it costs about $15 thousand dollars so I would guess that it must do what they claim. You get what you pay for in this world.

[TopTrader]

Hey sniper what was the link to that article?